Effect of price variation factors on the economic and financial profitability of cashew nut marketing in North Benin

Abstract

Price variability in cashew nut marketing is a factor determining the economic performance of the marketing link. The aim of this study was to assess the effect of price variation factors on the economic and financial profitability of traders in the chain. Data were collected from 200 merchants randomly sampled from lists received from their member organizations. The Kobotoolbox platform was used for data collection. The partial operating account method was used to calculate performance indicators. Means were compared using an ANOVA test, then the Seemingly Unrelated Regression Equation model was used to analyze the effects of different price variation factors on Net Margin and Internal Rate of Return. Collectors were more profitable, followed by wholesalers. Retailers had lower costs but lower gross margins. Factors such as demand for nuts, number of suppliers, quality and place of sale influenced price variation and hence economic profitability. The study implies the implementation of policies aimed at controlling these factors with a view to making the sector more attractive.

Key words: Effect, Price variation, Profitability, Marketing, cashew nuts, North-Benin

JEL Classification: Agricultural Markets and Marketing • Cooperatives • Agribusiness

Paper type : Empirical research